Harvard Business Case: Ducati
After the introduction of Federico Minoli, Ducati has transformed from a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world. But this is not enough for Minoli, who currently considers entering the Harley Davidson niche: introducing a Ducati cruiser. However, according to the analysis below – prepared using some basic strategic questions - this would not be a very wise choice for Ducati.
The motorcycle industry can be described to evaluate following tracks the main currents of modernity, with as most important aspects: Technology
According to the most recent data (2001), 1.6 million motorcycles sold around the world per year. These motorcycles are spread over 4 segments: Off-road (KTM, BMW and Huskvarna)
Cruisers (Harley-Davidson, Honda, Yamaha, Suzuki and Kawasaki, BMW) Styling over comfort and speed
Focus on American market
Touring (BMW, Harley Davidson and Honda)
Comfort for long rides
Sport bikes (Ducati market; BMW, Triumph and recently Harley Davidson) Speed, acceleration and minimal comfort
The median age of Ducati customers is 25-35 years old and women are increasingly important for Ducati (up to 8% sales per model)
Sources of competitive advantage
Ducati has the unique profile of Italian design and tradition combined with extreme performance and technical excellence. They are famous for their desmodromic valve distribution system; “the soul of Ducati”, which is widely appreciated and leads to a greater usable power. The noise of the Ducati is often described as music to the ears of purists Ducati uses racing competitions to test materials and transfer them to production series, has a high brand loyalty and has made a recent change to...
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